Measuring the ROI of Coaching

There are several reasons to evaluate the validity and ROI of a coaching program.
– Fiscal responsibility. Coaching comes at a price of not only money, but time and energy. All have a cost to the bottom line.
– Coming off a tight economy that has not fully recovered. Therefore closer scrutiny and tougher decisions are in order.
– Since, as this paper mentions, coaching is still beset with doubters, it is essential to prove the effectiveness of coaching to the bottom line.
– It is imperative to distinguish effective from non-effective coachingBearing these essentials in mind, there are many variables and items to measure and these variables are not always numeric. In addition, many coaching experts suggest that only about 5% of coaching programs should be measured in terms of ROI. Further, no two coaching assignments are the same and no two coaches approach coaching from the same perspective. Nevertheless, it is important to review effectiveness and quantify impact of coaching. Ways to help measure coaching consist of evaluating some of the following:

Hiring and sales management skills

Sales skills

Relationship building skills

Improving technological skills

Improving leadership skills

Improving management skills

Ability to get things done

Ability to communicate and listen

Learning

On-the-job application

Business results

ROI (if applicable)

Skills as a revenue generator (Bernard, 2006)

Administering a 3600 assessment both before a coaching program begins and upon completion of the program is sufficient measurement of coaching effectiveness (American Management Association/Institute for Corporate Productivity, 2007).

In measuring the value of coaching, it is well to remember that many events can affect coaching in both a negative and positive fashion. Some events that might affect coaching in a negative manner, are if a life changing event occurs for the coachee, external events such as 9/11, or the market crash. These types of events can slow or impact coaching. A positive change can include something as “mundane” as the Hawthorne Effect. This is where people improve their performance when they know they are being measured (Bernard, 2006).

Thank you for reading this blog post. If you would like to discuss how a coaching program can be customized for your organization call 404-320-7834, or email diane@performstrat.com, or visit www.performstrat.com

Author: Diane BoginoMs. Bogino is only one of a small number of people in the United States who is a Certified Growth Curve Strategist. She is also a Behavior Scientist and entrepreneur. Ms. Bogino works with CEOs to help them get to the root of a problem, identify it and then resolve it in order to help improve productivity, performance and profitability.
With her 20+ years in human resources and as co-founder of two of Atlanta’s most highly successful Italian restaurants, Provino’s and Scalini’s, Diane understands the challenges, hidden agents and the importance of identifying critical initiatives in each stage of an organization’s growth.
Diane’s expertise has been gained working with and within the following industries: associations, banking, education, executive recruiting, food and beverage, government agencies, hospitality, manufacturing, medicine, pest control, training, printing and retail.
Ms. Bogino is the author of five books. In a “former life,” Diane was an actress and model. She played a doctor in a movie, appeared in numerous commercials. She also did voice overs, print and runway modeling. At one time she was “Daffey Diane,” (some say she still is!), a magic clown. She also performed magic as herself winning Magician of the Year for Greater Atlanta.
Diane holds a Masters in Industrial Organizational Psychology (I/O) and a BS in Psychology. She is a Certified Growth Curve Strategist (CGCS), Behavioral Scientist, Registered Corporate Coach (RCC), Leaders Coaching Leaders Coach (LCL) and facilitator; Professional Behavioral Analyst (CPBA) (DISC Certified); Certified Motivators Analyst (CPMA); Certified TriMetrix HD (CPHD), Certified EQ Analyst (CPEQA), certified Master Trainer, and Instructional Designer/Developer.